Does it make sense to keep your hard-earned money invested in the stock market when the market is likely to lose 20% or more of its value?

Of course not. Yet most financial advisors and investment managers advocate a “buy and hold” strategy, recommending that investors keep their money invested even during a bear market.

While no one can predict with certainty how the market will perform at any given time, historically, many market characteristics tell us when we are entering a bear market and when we are entering a bull market.

While past performance is no guarantee of future results, selling when a bear market is expected and re-investing when a bull market is expected can yield higher long-term returns – with less risk than a buy-and-hold strategy (see chart).

To learn more about how active management can benefit you, contact Wenning Investments, LLC today.